Payroll carries a variety of risks, including:
Incorrect calculation of taxes
Failure to comply with local employment laws
Cyber attacks
Human error
Inaccurate record keeping
If your organisation operates internationally, you must understand and comply with the payroll regulations and tax regimes in the countries where your employees are based. Non-compliance can lead to substantial penalties and fines, as well as harm to your reputation.
Outsourcing to an unfamiliar third-party payroll provider can introduce risks including loss of control, data breaches, poor service quality or regulatory non-compliance by that provider. For this reason, it is vital to work with a trusted, dependable supplier.
Finally, be mindful of internal fraud risks, such as: